What is the expansion of CBDT?
VerifiedAnswer: Central Board of Direct Taxes
Explanation:
The Central Board of Direct Taxes (CBDT) is a crucial statutory authority in India that operates under the Department of Revenue, Ministry of Finance, Government of India. This organization plays a vital role in the country's tax administration system and is responsible for managing one of the most important revenue streams for the Indian government.
CBDT was established under the Central Board of Revenue Act, 1963, and serves as the apex body for the administration of direct taxes in India. The board consists of a Chairman and six Members, all of whom are appointed by the Government of India. These officials bring extensive experience in tax administration, policy formulation, and revenue collection to ensure effective governance of the direct tax system.
The primary responsibilities of CBDT include formulating policies related to direct taxes, supervising and controlling the Income Tax Department, and ensuring proper implementation of direct tax laws across the country. Direct taxes primarily include Income Tax, Corporate Tax, and Wealth Tax, which are levied directly on individuals, companies, and other entities based on their income or wealth.
One of the key functions of CBDT is to provide inputs for policy and planning related to direct taxes. This involves analyzing economic trends, studying taxpayer behavior, and recommending changes to tax structures that align with the government's fiscal objectives. The board also works closely with other government departments to ensure that tax policies support overall economic development goals.
CBDT also plays a significant role in taxpayer services and compliance. The organization works to simplify tax procedures, improve taxpayer education, and enhance the overall tax administration experience. Through various initiatives, CBDT has modernized tax filing processes, introduced digital platforms, and implemented technology-driven solutions to make tax compliance more efficient and user-friendly.
The board is also responsible for international tax matters, including the negotiation and implementation of Double Taxation Avoidance Agreements (DTAAs) with other countries. This helps prevent the same income from being taxed in multiple jurisdictions and facilitates international trade and investment.
